Cox Corporation produces a product with the following costs as of July 1, 20XX: Material $6 per
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Question:
Cox Corporation produces a product with the following costs as of July 1, 20XX:
Material | $6 per unit |
Labour | 8 per unit |
Overhead | 6 per unit |
Assuming Cox sold 22,000 units during the last six months of the year at $23 each, beginning inventory at these costs on July 1 was 6,000 units. From July 1 to December 31, 20XY, Cox produced 21,000 units. These units had a material cost of $5 per unit. The costs for labor and overhead were the same.
a. If Cox uses FIFO inventory accounting, what would be the gross profit for the period?
Gross profit $
b. If Cox uses FIFO inventory accounting, What is the value of ending inventory?
Ending inventory $
Related Book For
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
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